Heading off to college is an exciting time, but it also involves new adult responsibilities, including managing finances. Building a solid foundation in managing finances is crucial for all students, according to Sara Wilson, director of product innovation at Student Connections.

Building Credit

College is the perfect time to start building your credit score, said Courtney Alev, consumer financial advocate at Credit Karma. A credit score is a mathematical formula that helps lenders determine how likely you are to pay back a loan. Alev recommends starting with secured credit cards or student credit cards and only spending what you can afford to pay off each month.

Budgeting

Budgeting is a crucial step toward achieving financial stability. You can budget by using an app, creating a spreadsheet, or simply writing your expenses down on paper. Having a specific financial goal in mind can help you stay motivated to budget. Lindsay Bryan-Podvin, financial therapist and founder of Mind Money Balance, suggests dividing monthly bills by four to set a weekly savings target.

Creating an emergency fund can also save you from financial headaches down the road. Alev recommends having enough savings to cover rent and other essentials for a few months before starting to invest. Being transparent about your finances with friends can help you avoid feeling pressured to spend above your means.

Student Loans

Paying back student loans begins after graduation, but it’s crucial to have a plan while you’re still in college. This includes knowing how much you’re borrowing each semester, what your expected total repayment amount is, and how much your monthly payments will be once you graduate. Universities typically have resources to help with financial planning, so it’s best to take advantage of them while you’re in school.

Original reporting: NBC10 Boston — read the source article.